Los Angeles daily herald., 1887-08-26
RAILROAD REPORT.
The Affairs of the Southern
Pacific Company.
ITS ASSETS AND LIABILITIES.
Progress During 1886-One Hun
dreds Miles of New Lines
in California.

| Associated Press Dispatches to the HERALD
SAN FRANCISCO, August 25.-Tht
annual report of the Southern Pacific
Railroad Company for the year 1885,
was issued to-day. During the yeal
the total number of miles OF Central
Pacific lines operated was 134O; leased
lines in California, 412 miles; Pacific
system OF the Southern Pacific, 1896
Atlantic system of the same road,
1897; making total of 4S46 miles.
During the year 100 miles were built
in California.
RECEIPTS AND EXPENSES.
The total of gross earnings were in
round numbers $3l 900, 900; operating
expenses, $4,000, 900; earnings over
operating expenses, $l3, 3,000,000 bal
ance surplus, out of which was paid
81 l ,324 1893 interest on the bonds Of
the Central Pacific sinking fund, leav-
ing
SURPLUS PROPER
OF $1SO,OOO. Tie transcontinental
rate which was continued through al
most the entire year caused the net
results to fall below those of 1885.
ASSETS AND LIABILITIES.
The total stock of the system
amounts to 1,141,529 shares costing
over $SS ,000,0 The total assets are
500 900, 900. The authorized capital
stock is 100000, 900; capital stock
outstanding, $SS, 100000. Total of
liabilities and capital stock, 9S, 1893 ,9O6 ;
surplus of assets over liabilities, $364,-
S27.
GROSS AND NET EARNINGS.
Secretary and Controller Miller re-
ports the gross earnings of the Central
Pacific to be $l1, ,S00,00 operating
expenses, $5, 100000, which leaves
the same sum for earnings over the
operating expenses; of the leased
lines in California, $2,400, 900; of the
Pacific system of the Southern Pacific,
"a ,000, 900; of the Atlantic system of
the Southern Pacific, $2,000,0 900.
TRAFFIC. RETURNS.
The freight and passenger gross
earnings were 81 ,0l5 1882 and $3,645,-
$50 respectively; of sundry leased
lines in California $2,576,967 and ST.
511,S92 respectively; of the Pacific
system of the Southern Pacific $4 ,435, :
500 and 81, ,115, ,467 and of the Atlantic
system of the Southerd Pacific 81, $780,
$50 and 81 ,l91 sos. , -
COMPARISON WITH 1885:
General Manager Towne reports
that the gross earnings for 1885 were
SIS, ,S51 400 and for last year $21 ,422, :
629, while the operating expenses
were so, 1873, ,S39 in 1885, and $l1 $780,
427 in 1886. The earnings over the
operating expenses in 1885 were $l0,-
712 $50, and $40 1856, ,202 for last year,
making the percentages of operating
expenses for 1885, 1904, and for last
year 51.52.
THE FREIGHT CARRIED.
The number of pounds of local
freight carried last year was 4,719,-
633 ,230, and in 1885 3,S79, ,SS2 800 !;
through freight, 1,124 ,333, 1850, and
756, ,S4l $50 pounds respectively.
PASSENGER TRAFFIC.
In 1886 the number of east-bound
passengers was 66,3l2, and in 1885
81 1898; through west-bound passen-
gers 92,246 and 59,772 respectively ;
local passengers, 2,315, ,524 and 2,l23,-
1877.
EFFECT OF THE RAILROAD WAR.
The trans-continental rate war
commenced February 1S, 1886 and
continued until after the close of the
year. During this period the trans
continental rates were unreasonably
low, and doubtless in some cases be-
low the cost of carriage. As the lines
OF the company form with an import
ant exception the western portion OF
all the trans-continental rates term
mating in California, as well as the
whole of the Sunset route between
the Atlantic and Pacific, the income
of the company has been affected to a
very large extent by this struggle for
trans-continental traffic.
CAUSE OF THE DECREASED EARNINGS.
"The enormous increase of traffic
which we have carried at war rates
has been accompanied by large in
crease of expenses. So that the re-
suits for the year are less than for
1885,"
INTERSTATE LAW TO THE RESCUE.
Since the interstate commerce law
took effect on April 5, 1886, the trans
continental lines have made an agree
ment whereby the rates have been
practically restored.
WHAT STANFORD SAYS.
President Stanford says: " The great
reductions in transcontinental rates
have brought large numbers of tourists
and immigrants to California and the
Pacific Coast who have greatly in
creased the local business of our lines,
and so, to great extent have recouped
us in this way for the reduction in the
net earnings on through traffic.
THE WAR HAS DONE GOOD.
"Many, by the transcontinental
rate war, have found their way to ouI
shores and have come to stay, and
many who have returned to the East
have done so with the intention of set
Ting their affairs there and coming
again to California for home"
THE o. Il c. CONTRACT.
Continuing, Senator Stanford says /:
"On March of the present year this
company ratified the agreement which
secures to it the control of the Oregon
and California railroad and its opera
ton as through line in connection
with the Central Pacific, as well as
providing for its early completion to
the junction at the California State
line.
TERMS OF THE TRANSFER.
An agreement was made with com
mittees representing the stockholders
and bondholders by which the Pacific
Improvement Company receives stocl
and second mortgage bonds and the
Daa 60. 4 T..